In brief: Careem buys Indian bus app Commut, merges assets with rival Shuttl

Careem acquired the three-year-old Hyderabad-based firm and plans to roll out its bus services across 100 cities, it said in an emailed statement, without providing the deal value. Careem will take on Commut’s talent and technology, while Commut’s customers and drivers will become part of local shuttle service provider Shuttl.

Source: Bloomberg

The acqui-hire of Commut will help United Arab Emirates-based Careem move further into providing “point-to-point” mass transportation.

Commut is one of several app-based, on-demand minibus services that has emerged in India, where urban public transport can often be unreliable. Competitor Shuttl – which is acquiring Commut’s driver corps and user base as part of the deal with Careem – raised US$11 million in a series B round led by Amazon and Dentsu Ventures in July.

Careem is itself reported to be the subject of a potential takeover bid by US ride-hailing giant Uber.